The Fund is mandated by law to remit 1 percent of its operations budget to OPA.
In her report to the trustees last week, Fund auditor Lilian Pangelinan said, “Independent auditors started pointing out the Fund has not been remitting the 1 percent OPA fee pursuant to 1 CMC Sec. 7831.”
The Fund has not been remitting the obligatory 1 percent fee to OPA since 2006.
OPA has not been paying its employer contributions to the Fund as well.
Pangelinan reported that the OPA’s contributions had been lumped together with what the central government owes the Fund when Superior Court Judge Kenneth Govendo issued his ruling on a $231 million judgment in 2009.
Pangelinan said based on the administrative expense budget of the fund for FY 2011, “we owe [OPA] $46,237.”
She also said if there would be an settlement agreement with OPA, the Fund would be owing a net amount of $47,283.
It was reported in last week’s Fund meeting that the pension agency was trying to negotiate with OPA on the payment of the 1 percent fee and the collection of employer contributions from the agency.
It was found out that the two agencies could not agree on the tradeoff as “contribution is not part of the operation.”
Legal counsel Viola Alepuyo said, “The Fund was willing to write a check but OPA could not get Finance to commit to write a check.”
Legal counsel Carolyn Kern said, “Right now there is no tradeoff. We haven’t paid them their 1 percent.”
She also said that for the current fiscal year, it was not booked that the Fund owes OPA.
The board had resolved that it would discuss this matter on Jan. 6 when they reconvene for a board meeting.
In the meantime, the Fund has decided it will not be paying the said fee.
